US Dollar goes up on Istanbul Stock Market: Dollar TL rate sees 3.53 level

The dollar and the euro are climbing up as referendum in the Northern Iraq Region takes place. While the dollar has gone above 1.5 month peak of 3.53 liras, the euro has strengthened against the other currencies. The Euro also reached 4.20 Turkish Lira, a peak for the last 2 months. In the meantime, Istanbul Stock Exchange has suffered a loss of 2 percent and the BIST 100 index has fallen below 102 thousand. Factors such as the referendum in northern Iraq (boosting geopolitical risks), Fed’s announcements and election results in Germany have certainly had an impact on this situation.

The dollar TL rate had exceeded the level of 3.50 last week, for instance based on the critical situation in Iraq. On the other hand, dollar/ TL that completed the day around 3.50 on Friday started at 3.5015 / 3.5030 this morning.

Experts say “It’s a very critical week for the USD in a global sense. Following the statements by FED signaling interest-raising could take place in December, markets had already seen a gain in dollar.

On the other hand, the euro which has negatively affected by the challenge Merkel is to face to form the government – based on election results that is – has caused the USD to get a little more forefront.

Moreover, markets are concerned about the message Janet Yellen may deliver on Tuesday and other FED members are also likely to make speeches on interest rates which can also cause movements in the markets. Besides, we have a tax reform issue on our agenda this week not to forget that important data such as GDP and PCE will be announced as well.”